I’m on salary and I get paid every two weeks. I’m aware of payday in a sense of “It’s time to pay the bills and do the shopping and saving and investing” but that’s about it. It’s been a long time since we had to roll quarters to fill up the gas tank.
I do the same thing even sven; does. Not sure what else you would call it (at least not succinctly anyway)… Given the context, I think most people take my meaning as they know I’m gainfully employed.
I grew up in a house where my dad got a big check quarterly. That was hard to budget around.
Now, I don’t care too much. Since I don’t keep a lot of liquid cash, I have to pay some attention (oh, I’m going to dip into overdraft protection this month because property tax is going to hit before payday if I don’t move some money from savings). But that is because I’m established, with a decent household income, and savings.
It does take a while to go from $0 in your account to having enough of a cushion where you don’t need to worry about payday - unless you make far more than you spend. For most people, they spend pretty close to what they make, so establishing that cushion takes months. And if they are truly at $0 from unemployment, they might be in debt, in which case it takes longer.
No idea when the money gets electronically deposited. My wife does the finances, tho. But we don’t make any money decisions based on paydates. A 3-paycheck month might figure in - especially if we are setting money aside for travel/entertaining/holidays, etc.
I’ve never thought about paydays.
When I was in grad school, the university was considering going from paying graduate assistants every two weeks to paying them every month. There was a loud outcry, with people saying “how will we be able to survive at the end of the month?” and I was genuinely baffled about what they were referring to. If it’s not a pay cut, then how can it hurt you?
It does to me, yes. But it’s in the context of, rent comes out of paycheck X, and utilities out of paycheck Y. Not as in, “I have twenty cents until my paycheck.” Make sense?
Now I’m feeling dreadfully unpopular, as no one presses me for reasons when I don’t go out after work.
But I think it might show a lack of awareness of and compassion for the problems others face, though obviously not in this case.
A friend with two properties, two cars, fully funded personal retirement accounts (as in legally could not put more in them), once used the term to explain a decision to make a more frugal discretionary purchase - something like an inside cabin on a cruise; I mocked that choice of words mercilessly.
I think it’s just easier to use the term “broke” and for people to understand what you mean without going into private details.
To me, “I can’t; I’m broke” could mean I have no money today or could mean I know exactly how much money I have left this month and I’d like to pay the electric bill on time.
Broke can also mean “I don’t choose to afford that.” It may not mean that they aren’t going to run out of money by the end of the month - but they really aren’t for dropping $50 at the bar on Thursday night.
I’ve been known to plead broke when my kids want to stop by McDonalds. I can easily afford McDonalds, it won’t make me unable to pay the bills, but I don’t want a $20 McDs drive through bill (which you can get easily with a seventeen year old boy in the car) because he didn’t bother to eat before he left the house despite being reminded 78 times that he should. I’m “too broke” to drop by Starbucks every day with my coworkers.
I’ve also plead broke when people have wanted to take vacations I haven’t really wanted to go on. It isn’t that the money isn’t there, its that I choose not to spend the money on that.
To a degree. I use direct deposit for my paycheck and automatic transfers for most bills. Since I like to keep the amount in “checking” as low as possible, having the paycheck deposited at a specific series of dates makes that easier.
Hell yeah, that’s spendy time!
My bills come out just after payday, and I take a set amount out into savings then, with the intention that any largish luxury purchases I’ve been coveting come out of money still in the account at the end of the pay period, provided I’ve spent under budget for the month, so there’s enough left in the general account. Or I just put it in savings, if I’m not really after anything specific right now.
It seems to work for me; I still get to buy fun stuff, so I don’t feel left out, but I still wind up saving most, and it gives me an incentive to not overspend on little things through the month.
I’m on an hourly wage, so if there’s something I want to splurge on, I’ll wait till payday to see how much ‘extra’ or OT is in my check. I mean, I can totally afford it today, but I like knowing if a higher check will offset my purchase.
No, I don’t pay much attention. My checks are deposited automatically and my bills are paid automatically. I occasionally check the balance, if I’ve had more expenses than usual, but normally I don’t pay it any mind.
I work freelance, so “payday” happens as many as fifteen times a month, in amounts that vary from four digits to two. I live way, way below my means as a result; I can’t count on a regular schedule. In addition, I’m saving pretty hard for a down payment on a house, so “payday” doesn’t mean much except that it might be time to send a chunk of money to the retirement IRA or stick it into the savings account.
I’m self-employed, so “payday” happens just several times a year.
…its entirely fair. Basic budgeting skills includes forecasting your cash: and knowing when money is coming in is as important as knowing when money is going out. If you are at the point where you can’t “understand the mentality” of people who have basic budgeting skills (knowing when money is coming in and spending accordingly) then you do have a privileged position. People sometimes spend within their means and sometimes something comes up they would really want to do, but they can’t. This is sad for them but not something worth having a rant about. From the OP:
Not being able to do something that “they would really want to do” is not an important “life decision”. There are plenty of people out there who live “payday to payday” who base their spending decisions on when that money comes in. “Wants” are not “needs” and it really isn’t that hard to understand the mentality of people not spending more than they earn on things that they don’t really need.
It’s the marihuanas.
Yes.
But that’s because I’m still low income. Over the course of the month I have the money to pay all my bills, but only if I’m careful on the timing. If I attempted to pay everything the first week checks would start bouncing.
So… first paycheck of the month pay rent.
Second… smaller bills
Third… larger bills than the small bills, but are still smaller than rent.
Fourth… save most of it to make sure money for rent AND food is available the first week of the next month
(If there are five paydays in a month #5 gets banked)
I am fortunate that I now have a rainy day fund for emergencies, but I keep it by ONLY spending it on emergencies. For regular expenses I pretend I don’t have it, it keeps me living within my means.
In order to get our financial lives in order we’re using cash envelopes for groceries, restaurants, etc. So yes, once we’ve spent that that’s it.
I really don’t think I’m in any kind of privilidged postion. I’ve never had more than a low income, and often not even that. I really am not talking about “groceries or rent” decisions here as I tried to make clear in the OP. Personally I’ve never felt comfortable without a cushion so I’ve always had one. If I couldn’t spend one months wages in one go, then I don’t spend anything that doesn’t directly keep me alive. Any decisions about “can I afford this?” are based on my general (very low) income but independent of the time of the month. If an event I’d like to attend comes up on the 27th I’m just as likely to go to it as if it was on the 4th. If there is no such event on the 27th I don’t spentd any extra money on the 4th just because I’ve got money to spend. Simples!
If you are at the point where you can’t “understand the mentality” of people who have basic budgeting skills (knowing when money is coming in and spending accordingly) then you do have a privileged position.